Charles P. Stepnowski - Page 15

                                       - 15 -                                         
          is a legal one, and neither discovery nor extrinsic evidence is             
          necessary or appropriate for its decision.  Petitioner’s asserted           
          purpose for discovery is simply a disagreement with the position            
          taken by Hercules with respect to the effect of the 2001 plan               
          amendment.                                                                  
               We now turn to the question of whether respondent                      
          Commissioner erred in issuing a favorable determination letter to           
          Hercules.  As noted above, section 401(a) lists the requirements            
          that must be met by a trust forming part of a pension or profit-            
          sharing plan in order for that trust to be eligible for favorable           
          tax treatment under the various sections of the Internal Revenue            
          Code.  Under section 401(a)(7), a trust shall not constitute a              
          qualified trust unless the retirement plan of which such trust is           
          a part satisfies the minimum vesting standards of section 411.              
          Under section 411(a), a retirement plan must provide that, inter            
          alia, the requirements of section 411(a)(11) are met.  Section              
          411(a)(11), as amended by the Uruguay Round Agreements Act, Pub.            
          L. 103-465, sec. 767(a)(1), 108 Stat. 5038, provides that, if the           
          present value of a participant’s nonforfeitable accrued benefit,            
          as determined under section 417(e)(3), exceeds a specified dollar           
          amount, the plan must provide that such benefit may not be                  
          immediately distributed without the participant’s consent.  See             
          sec. 411(a)(11)(A) and (B); see also sec. 1.411(a)-11(a), (d),              
          Income Tax Regs.                                                            






Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011